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Troy Mitchell McCormick, 50, of Commerce Township, Michigan, pleaded guilty today in U.S. District Court in Nashville, Tenn., to charges of mail and wire fraud, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee for the administration of this case.

During a plea hearing before U.S. District Court Judge Marvin E. Aspen, McCormick admitted engaging in a scheme to defraud while employed as a sales representative and Vice President for Business Development at Emdeon, a company headquartered in Nashville, Tennessee, that provided data and information services to hospitals, health systems and other customers in the healthcare industry. McCormick was responsible for overseeing the accounts of certain Emdeon customers located in Michigan, including Memorial Health Care, Spectrum Health Systems, CareTech Solutions and the University of Michigan.

McCormick admitted that he fraudulently fabricated contracts between his Emdeon and these client customers and that he forged signatures on these contracts. As a result of McCormick’s forged contracts, these customers were billed inflated amounts and McCormick received more than $100,000 in additional incentive compensation.

McCormick further admitted taking certain steps to conceal his scheme, including posing as fictitious hospital and university employees and using email addresses in the names of these fictitious employees to correspond with his employer regarding the fraudulent contracts. McCormick also acknowledged that he manufactured and mailed a counterfeit check for $77,304.12 in an effort to cover up a forged contract.

After Emdeon learned of this scheme, Emdeon refunded any improper payments to its customers.

McCormick is scheduled to be sentenced by Judge Aspen on September 19, 2016.

He faces up to 20 years in prison and a $250,000 fine on each fraud count, in addition to forfeiture of any money or property derived from the fraud. McCormick will also be ordered to pay restitution to any victims of his offense. McCormick’s sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.

This case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.

Department of Justice U.S. Attorney’s Office Middle District of Tennessee